ASSESSMENT OF CUSTOMER SATISFACTION IN THE BANKING ...

(A CASE STUDY OF THE TRUST BANK IN KUMASI METROPOLIS.)
BY
A DISSERTATION SUBMITTED TO THE DEPARTMENT OF BUSINESS STUDIES,
CHRISTIAN SERVICE UNIVERSITY COLLEGE IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION (MARKETING OPTION).
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DECLARATION
We have read the Christian Service University College’s regulations relating to plagiarism and
certify that this research work (project) is all our work and do not contain any unacknowledged
work from any other source. We also declare that we have been under supervision for this
research work (project) herein submitted.
Name of Students Index Numbers Signature Date
KYEI FRANK KOFI 10124182 ………… ………….
DARKO PATIENCE MINTAA 10135235 …………. ………….
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ACKNOWLEDGEMENT
Our great ultimate gratitude goes to the Almighty God for His grace, love and direction
throughout our period of study. Our appreciation again goes to our supervisor Mr. Stephen
Banahene, who through his guidance encouraged and contributed constructive criticism and
above all his suggestion assisted us greatly during the development of the questionnaires and also
spending time and energy in correcting us during our analysis.
Additionally, we are also grateful to the management and staff of The Trust Bank of Adum, Ash
Town and Suame branches respectively.
Finally, we say thank you to all who responded to our questionnaires, you have made a mark in
our lives during our project work.
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ABSTRACT
As the competitive environment become more turbulent in the banking industry, there is the need
to assure and ensure customer satisfaction, in order to enjoy high market share and competitive
advantage. The study therefore was conducted to assess customer satisfaction in the banking
industry, taking The Trust Bank in Kumasi as a case study of the research. The main objective of
the research was to assess customer perception of the service being received from The Trust
Bank and the significance of customer satisfaction. This project was basically exploratory
research using both qualitative and quantitative approach. The sampling technique was
convenient and stratified. Source of data were primary and secondary.Data collection instrument
were questionnaire, face to face structured interview and participation observation. Three
branches whichinclude Adum, Suame and Ash town were selected out of the four branches. The
population size was 16,000 and 90 customers and staff respectively for the three branches.
Sample size was 375 and 73 for customers and staff respectively. Major findings were due to
The Trust Bankquality services provided to customers paved way for customers delight and
satisfaction. This made the customers to have corporate image and identity of the bank (TTB),
making them to have competitive advantage and contribute hugely to their customer base and
high market share.The staff of TTB addresses promptly to complaints of customers with
urgency, professionalism and excellent communication skills. This enhances customer
satisfaction aiding The Trust Bank to have corporate image and identity.The conclusion was that
customers are highly satisfied at The Trust Bank. Recommendation was,since quality is not
stable and is always changing according to the different needs of customers, managers should
make conscious effort to improve and enhance the quality of products and services to meet the
satisfaction of customers by engaging in more research work.
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DEDICATION
This project work is dedicated to our parents whose conscious effort and contribution to our
tertiary education has brought us to this level. This project work is again dedicated to the
management and staff of The Trust Bank who really helped us in our project work.
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1.3 research questions……………………………………………………………...4
1.4 research objectives…………………………………………………………......5
1.6 limitations………………………………………………………………………5
CHAPTER 2
LITERATURE REVIEW
2.2 understanding customer needs………………………………………………….10
2.2.1 How can we give that added value or quality to a customer?..........................11
2.2.2 What is important for customers?......................................................................11
2.3 Definition of Concepts…………………………………………………………12
2.3.1 Customer……………………………………………………………………….12
2.3.3 Customer satisfaction………………………………………………………...13
2.3.4 Customer loyalty……………………………………………………………..14
2.3.5 Service quality……………………………………………………………….14
2.3.6 Quality…………………………………………….…………………….14- 15
2.3.7 Convenient sampling………………………………..………………………..15
2.4 Why is it Important To Satisfy Customers?...............................................15 - 16
2.5 Measuring Customer Satisfaction………………………………………...16 - 17.
2.6 Quality and Satisfaction………………………………………………..…17 - 19
2.7 Impact of Customer Satisfaction………………………………………...…….20
2.8 The Complaint System……………………………………………………20 - 21
2.8.1 Sources of complaints…………………………………………………………..21 - 23
2.9 Customer Service Programme…………………………………………………23 - 24
2.9.1 Management Systems for monitoring customer service……………………....24 - 25
CHAPTER THREE
RESEARCH METHODOLOGY
3.1.1 Research Design……………………………………………………………………...26
3.2 Populations………………………………………………….………………………..27
3.3.1 Branches……………………………………………………………………………..28
3.4 Sources of Data……………………………………….……………………………....30
3.5 Data Collection Methods……………………………………………………………..30
3.6 Data Analysis………………………………………………,…………………..30 - 31
3.7 Validity and Reliability………………………………………………………………31
CHAPTER FOUR
CHAPTER FIVE
5.2 Conclusions……………………………………………………….…………………….57
1.0 BACKGROUND
Customer satisfaction is often considered the most important factor thriving in today’s highly
competitive business world. Services have unique characteristics that distinguish them from the
physical goods (Zeithaml and Bitner, 1996).
Today’s organization face tough competition and things will only get hard for them to succeed in
today’s fiercely competitive markets, hence the need for companies to move from a product and
selling philosophy to a customer and markets philosophy. To win in today’s competitive market
place, companies must be customer-centered. Companies must deliver superior value to their
target customers. In the banking industry, a key element of customer satisfaction is the nature of
the relationship between the customer and the provider of the products and services. Satisfied
customers are central to optimal performance and financial returns (Zeithaml and Bitner,
1996).In many places in the world, business organizations have been elevating the role of the
customer to a key stakeholder over the past years, thus customers are viewed as a group whose
satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-
looking companies are finding value in directly measuring and tracking customer satisfaction
(CS) as an important strategic success indictor. Evidence was mounting that places a high
priority on CS was critical to the improvement of organizational performance in a global
marketplace.(E. Boone and Kurtz David L 1999).
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Customer satisfaction is an important issue for marketing managers, particularly those in services
industries (Bennett and Rundle-Thiele, 2004). In general, if the customers are satisfied with a
provided goods or a particular service, the probability that they use the service again increases
(East, 1997). But the problem here is the complexity of dealing with customer satisfaction.
Also, satisfied customers will most probably talk enthusiastically about their buying or the use of
a particular service; this will lead to positive advertising (File and Prince, 1992) & (Richens,
1983). In today’s competitive retail environment, the focus is on building customer loyalty, and
that means delighting your customers. If employers and employees are not delighted and
satisfied with their work how employees can delight the organization’s customers? The lifetime
value of a customer represents by way of long term association and word of mouth.
This project explored the two (2) types of customers as being internal and external customers,and
the interdependency roles they both play in the industry, characterized by the unpopular tilt in
favor of customer’s satisfaction instead of customer delight. The findings will alert participants
in the financial environment of the competition ahead of them in spite of the various alternatives
available to customers nowadays and the strategies developed for them to stay on top of the
stairs. Many companies fissure in because they do not comprehend the varying market
environment and the significance of delivering values to customers. Banking is one of the
numerous services in which the customer satisfaction has had an ever increasing importance in
the corresponding research areas. This is essentially because the banking sector is becoming
more and more competitive (Levesque and McDougall, 1996).The fundamental basis of the
marketing concepts involves the matching of the skills and resources of the organization, profits
or non-profit related, to the needs of the customer. Marketing management relies on the
understanding of how customers make decisions and their likely reactions to the different
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elements of marketing mix. According to Turban et al, (2002), customer service is a series of
activities designed to enhance the level of customer satisfaction that is, feeling that a product or
service has met customer expectation.
1.1 STATEMENT OF THE PROBLEM
Customer care and satisfaction have their foundation in the fundamental concept of marketing
and philosophy of marketing is essential to customer orientation. (Baker 1999).Customer care
appears to be complex to study but anyone with deep understanding in an organization is likely
to be conscious of the significance of customer care when operating the activities and how
defectively customers are managed. There are so many good reasons for customer satisfaction,
yet most companies often fall short to conduct customer service in order for customers in the
banking industry to gain satisfaction. Banks are increasingly aware that assessing their
customers’ satisfaction with quality of service is key ingredient to ensure satisfaction and
profitability. Many organizations lose most of their customer to their competitor due to the fact
that they do not recognize the importance and satisfaction of customers and their contribution to
enhance growth of such organization. Appreciating the effort to meet special request of
customers and providing for the needs of the customers and also ensuring their satisfaction helps
the organization to grow, increase in profitability ratio, market share, customer retention and
loyalty. This study is therefore undertaken to assess customer satisfaction in the banking
industry.The problem is customers in the banking industry do not really get the desirable care
and most favorable satisfaction in terms of services provided to them at Trust Bank. The
research was to investigate and know why The Trust Bank provides customer care and
satisfaction, and how these services were accepted or rejected by customers. Also the research
was to find if Trust Bank really understand the value of customer satisfaction.
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1.2 JUSTIFICATION OF THE STUDY
The bank cannot function very well without the existence of customers so as customers will not
patronize a bank if they do not gain satisfaction. Therefore, this research made available
information to management of the bank and the general public to be familiar with the extent of
the customer satisfaction. The research support management to establish more practical strategies
towards customer satisfaction and also to serve as a basis of information to those who yearn for
or to take a further research into customer satisfaction. Competition is extremely high in the
banking industry, therefore if a bank does not put premium in the assurance of customer
satisfaction and care, that bank would eventually lose its customers and would strategically wear
out. Also with The Trust Bank putting customer satisfaction at heart would lead to high market
share and competitive advantage over its competitors. When banks promise customers
satisfaction and care to customers, apparently customer base and profitability would increase.
This would enable the customer and general public to go for loans to start business and also to
expand their business. This in the long run would alleviate high unemployment rate and also
increase GDP of the country through the payment of taxes which would improve social amenities
and infrastructure of the country.
1.3 RESEARCH QUESTIONS
To what extent can The Trust Bank use customer satisfaction to gain competitive
advantage?
What customer care or services programmes are available to the Trust bank customer?
Is customer satisfaction necessary for sustainable competitive advantage?
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1.4 RESEARCH OBJECTIVE
• To assess customer perception of the service being received from The Trust Bank.
• To examine the significance of customer satisfaction and its mechanism.
• . To examine if, The Trust Bank can use customer satisfaction to gain competitive
advantage.
1.5 SCOPE OF THE STUDY
The research was centered on The Trust Bank in Kumasi metropolis and focused on individual
customers’ satisfaction between the years of 2009 to 2011.
1.6 LIMITATIONS
In the course of the research, we encountered a lot of problems such as follows;
Difficulty in accessing information from respondents. The researchers found it difficult to
get information from its respondents more especially customers. Some customers were
unwilling to give help as to give information for the research.
Financial constraints
Time constraints. We thought giving a letter to the branch manager would enable them to
have easy access to the bank but it was not so. This was due to the bureaucratic system of
the bank. Therefore the letter had to be sent to head office for approval before any
research could be conducted. This affected the time in which the project was suppose to
be finished.
The researcher sent three hundred and seventy – five (375) questionnaires out but only
three hundred and sixty (360) questionnaires were returned.
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1.7 ORGANIZATION OF THE STUDY
Chapter one has to do with the introduction to project, research questions, objectives, scope and
limitations. Chapter two deals with the review of the related literature and chapter three also talks
about the research methodology. Chapter four which is the last but one chapter gives the analysis
of data gathered. Chapter five which is the last chapter also conclude the project and gives
recommendations.
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CHAPTER 2
LITERATURE REVIEW
2.0 INTRODUCTION
Service firms have the opportunity to build long term relationship because customers conduct
their transactions directly with the service provider, most often in person. Knowing your
customers is a significant competitive advantage for a service organization. Having a database of
customer's names and addresses and their use of the service permits targeted marketing and
individual treatment of customers. Sivadas and Baker-Prewitt (2000): "There is increasing
recognition that the ultimate objective of customer satisfaction measurement should be customer
loyalty". Customers benefit from membership because of the convenience of annual fixed fees
and the knowledge that they are valued customers who will receive occasional perks (frequent
flyer awards) Clarke(2001) said that customer satisfaction is really no more than the price of
entry to a category.
For satisfaction to be effective, it must be able to create loyalty amongst customers. To compete,
successfully in today's competitive marketplace, banks must focus on understanding the needs,
attitudes, satisfactions and behavioral patterns of the market (Kaynak and Kucukemiroglu, 1992).
Consumers evaluate a number of criteria when choosing a bank. However, the prioritization and
use of these criteria differs across countries, and thus cannot be generalized. For example, in a
study of Canadian customers in Montreal, Laroche and Taylor (1988) found that convenience is
the principal reason for bank selection, followed by parental influence with respect to the status
of the bank, recommendations of friends and relatives and accessibility to credit.
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The working of the customer's mind is a mystery which is difficult to solve and understanding
the nuances of what customer satisfaction is, a challenging task. This exercise in the context of
the banking industry will give us an insight into the parameters of customer satisfaction and their
measurement. This vital information will help us to build satisfaction amongst the customers and
customer loyalty in the long run which is an integral part of any business. The customer's
requirements must be translated and quantified into measurable targets. This provides an easy
way to monitor improvements, and deciding upon the attributes that need to be concentrated on
in order to improve customer satisfaction. We can recognize where we need to make changes to
create improvements and determine if these changes, after implemented, have led to increased
customer satisfaction. "If you cannot measure it, you cannot improve it" - Lord William
Thomson Kelvin (1907).Service delight is now the culture of several progressive companies over
the world. With this increasing emphasis on service delight and service quality, the banking
industry in Ghana is becoming increasingly competitive and natural dilemma. In the service
industry, successful companies need more than just a competitive advantage in customer service.
They need to have unwavering loyalty from their customers. The key for providing superior
service is to understand and respond to expectations when judging the quality of a firms' service
offering (Parasuraman et al 1988).
The banking industry (which is part of the global service industry) not only plays a leading role
within the financial system in a country but also has an important socio- economic function.
Delivering quality service to customers is a must for success and survival in today's competitive
banking environment (Samli and Frohlich, 1992). Among others, provision of high quality
services enhances customer retention rates, leads to higher market shares, lowers staff turnover
and operation costs, and improves employee morale, financial performance and
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Profitability. The importance of quality to business outcomes is now well established in the
academic literature. It has been demonstrated that higher quality results in higher stock prices,
higher corporate performance, and higher market value of the firm. In the customer satisfaction/
service quality arena, aggregate market studies have shown that higher customer satisfaction
leads to better financial returns (Hallowell, 1996).Customer satisfaction is another important
aspect of service organizations and is highly related with service quality (Bolton and Drew, 1991
and Spreng&Mackoy, 1996).
Today's customers face a growing range of choice in the products and service they buy. They are
making their choices on the basis of their perception of quality, service and value. Companies
need to understand the determinants of customer value and satisfaction. Increased customer
satisfaction leads to behavioral outcomes such as commitment, intentiontostay (customer
retention), creation of mutually rewarding relationship (bond) between the service provider and
the user, increased tolerance for service failures and positive word- of- mouth advertising about
the organization (Gounans et al, 2003, Reich held, 1996; Newman 2001)Service quality has been
linked with customer satisfaction within the banking industry (avkiran, 1994; Le Blanc and
Nguyen, 1998; Blanchard and Galloway, 1994). Banks now know that delivering quality service
to customers is essential for success and survival in today's global and competitive banking
environment (Lewis and Pescetto, 1996; Wang et al, 2003). Research have shown that satisfying
customer is not enough to retain them because even satisfied customers defect' at a high rate in
many industries (Schneider and Bowen, 1999)
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2.1 SERVICES OR (PRODUCTS) OFFERED BY BANKS
Banking is the business of providing financial services to consumers and businesses. The basic
services a bank provides are checking accounts, which can be like money to make payments and
purchase goods and services; saving accounts and time deposits that can be used to save money
for future use; loans that consumers and business can use to purchase goods and services; and
basic cash management, services such as cheque cashing and foreign currency exchange
(Johannes, 2005). In Ghana, the business of banking is governed by the Banking Act, 2004
2.2 UNDERSTANDING CUSTOMER NEEDS
Consumers may choose the channels they prefer based on a number of factors; the price, product
assortment and convenience of channels option as well as their own particular shopping goals
(economic, social or experiential). As with products, segmentation exists and marketers
employing different type of channels must be aware that different consumers have different
needs during the purpose process. In business-to-business trading, providing a high level of
customer care often requires you to find out what your customers want once you have identified
your most valuable customers or best potential customers, you can target your highest levels of
customer care towards them. Another approach, particularly in the consumer market, is the
obligation to treat all consumers to the highest standard.
According to Dr. Louis Doguara (MOH, Malta 2002) caring and effective customer relations are
the key to success for any service industry. In the banking industry, effective customer care is
vital because of delicate personal nature of the service transactions.
2.2.1 How can we give that added value or quality to a customer?
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By ensuring that each time we interact with customers we treat them with honesty and respect
irrespective of their age, color, race, gender, ethnicity, religion, social class etc. By keeping in
mind that everyone of us might be the only that a customer has with our banking services.
Customers will judge the way bank workers interact and perform as an indicator of quality in the
bank overall performance.
2.2.2 What is important for customers?
According to (Thomas O Jones and W Earl SasserJr, 1995) it is a common knowledge that
customers are becoming more demanding with higher expectations than ever before, and can
compare services being offered against experiences gained elsewhere. As bank workers cannot
ignore the negative image and cost incurred when delivering poor services, they need to think
about ways in which to exceed customers" expectations and provide a service that continuously
strives to meet customers' evolving needs. Customers feel important and appreciated.
• Being greeted with a smile.
• Genuinely listening to them.
• Checking from time to time that everything is okay while customers are still waiting for their
turn to be served.
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2.3.1 Customer
According to Heber L. Hart a customer is; “a person who has an account with a banker”.
Coming to the meaning of the word, Hart says that a person is a “customer” of a bank within the
meaning of section 82 of the Bills of Exchange Act, 1882, if he keeps either a current or a
deposit with the bank, or, it would seem if the bank systematically transacts with him, or for him,
any kind of banking business.
In contrast,
Paul R. Timm also defines a customer as; “someone with whom we exchange value and no
business or individual can succeed without creating customer satisfaction”.
From the two definitions, it can be deduced that a customer is not only people who have an
account with a bank but anyone who transact or exchange value.
2.3.2 Customer Service
Jamine L. Scott. (2002) states that; “Customer service is a series of activities designed to
enhance the level of customer satisfaction- that is, the feeling that a product or service has met
the customer expectation”.
To buttress this;
Anderson and Jacobsen (2000) says that; “Customer service is providing everyone who is in
need of your service with a solution or a satisfactory answer that will ensure their satisfaction”.
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Philip Kotler also have this to say; “Customer service is the service that a consumer receives
before, during and after a purchase”.
From the above definitions, the researchers were with the notion that customer service was a
service which goes through processes to render services to customers but the ultimate thing was
to meet the customers’ level satisfaction.
2.3.3 Customer Satisfaction
F Robert Dwyer & John F. Tanner relays that; “customer satisfaction refers to the extent to
which customers are happy with the products and services provided by a business”.
According to Hansemark and Albmsson (2004), "customer satisfaction is an overall customer
attitude towards a service provider, or an emotional reaction to the difference between what
customers anticipate and what they receive, regarding the fulfillment of some need, goal or
desire". Philip and Armstrong (1997) also lament that; Customer satisfaction can be experienced
in a variety of situations and connected to both goods and services. It is a highly personal
assessment that is greatly affected by customer expectations.
From the above definitions and the purpose of this project, the researchers can assert that
customer satisfaction was where customer expectations were met through the product and service
of an organization.
2.3.4 Customer Loyalty
According to Anderson and Jacobsen (2000) "customer loyalty is actually the result of an
organization creating a benefit for a customer so that it will maintain or increase their purchases
from the organization.
Oliver (1997) also states that customer loyalty refers to "a deeply held commitment to re-buy or
re-patronize a preferred product or service consistently in the future despite situational influences
and marketing efforts having the potential to cause quick service.
2.3.5 Service Quality
A service as defined by Philip Kotler as "any act or benefit that one party can offer to another
that is essentially intangible and does not result in the ownership of anything. Its production may
or may not be tied to physical product".
He continues that,
Services cannot be touched, tasted or handled as tangible products like soap, food and shoes cars.
Therefore marketers of services face challenges of how to 'handle' the intangible product. For
example; depositing money at a bank and getting advice from a bank.
2.3.6 Quality
Quality is an extremely difficult concept to define in a few words. At its most basic, quality has
been defined as conforming to requirement (Crosby, 1984). This implies that organization must
establish requirements and specifications; once established, the quality goal of the various
function of an organization is to comply strictly with these specifications. A second series of
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definitions therefore stated that quality is all about fitness for use (Juran, 1982) - a definition
based primarily on satisfying customers' needs. Many analysis of service quality had been
attempted to distinguish between objective measures of quality and measures which were based
on the more subjective perceptions of customers.
A definition from Swan and Comb (1976) identifies two important dimensions of service
quality: instrumental quality describes the physical aspect of the service while the expressive
dimension relates to intangible or psychological aspects. A development of this idea by Gronroos
(1984) identifies 'technical' and 'functional' quality as being the two principal components of
quality.
2.3.7 Convenient Sampling
According to Saunders et al (2009); convenient sampling is sampling procedure in which cases
are selected haphazardly on the basis that they are easiest to obtain.
2.3.8 Service support materials
Service support materials are office equipment, office signage and communication materials used
in TTB.
2.4 WHY IS IT IMPORTANT TO SATISFY CUSTOMERS?
Because a company's sale comes from how basic groups new customers and repeat customers. It
usually cost more to attract new customers than to retain current ones. And the key to keeping
current customer was customer satisfaction. A satisfied customer buys a product again, talks
favourably to other about the product or service, pays less attention to competing brands and
advertising and buys other products from the company.
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Highly satisfied customers produce several benefits for the company. Satisfied customers were
fewer prices sensitive. Although the customer centered firm seeks to deliver high customer
satisfaction relative to competitors, it does not attempt to maximize Customer satisfaction.
Customer satisfaction was a highly personal assessment that was greatly influenced by individual
expectation. Some definitions were based on the observation that customer satisfaction or
dissatisfaction results from either the confirmation or disconfirmation of individual expectation
regarding a service or product.
According to Haword and Sheth (1969); to avoid difficulties stemming from the kaleidoscope of
customer expectations and differences, some urge companies to concentrate on a goal that is
more closely linked to customer equity.
Zoeka and words (1998) also noted common mistakes employee made with their customers.
Employee took the customers for granted, the employees spoke fast that the customers have to
ask him/her to repeat what is said. They also interrupt the customer or no longer listen, believing
they know what the customer is asking or saying.
2.5 MEASURING CUSTOMER SATISFACTION
Customer satisfaction levels can be measured using survey techniques and questionnaires.
Gaining high levels of customer satisfaction was very important to satisfied customers that were
most likely to be loyal and to make repeat orders and to use a wide range of services offered by a
business. Companies that achieve higher customer satisfaction was not out to maximize
customer satisfaction because they sacrifice satisfaction for profitability.
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Organizations were increasingly interested in retaining existing customer while targeting non-
customer, measuring customer satisfaction provides an indication of how successful the
organization was at providing product and / or service to the market. With customer satisfaction
the actual manifestation of the satisfaction depended on a number of both psychological and
physical variables which correlate with satisfaction such as return and recommend rate. The
levels of satisfaction can also vary depending on other options the customer may have and other
products against which the customer can compare the organization’s products.
Because satisfaction was basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantify of research in this area has recently been
developed. Work done by Berry, Brodeur between 1990 and 1998 defined ten quality values’
which influence satisfaction behavior further expanded by berry in 2002 and known as
satisfaction include, quality, values, timeless, efficiency ease of access, environment,
interdepartmental.
2.6 QUALITY AND SATISFACTION
Brady and Cronin (2001) has this to say; the effect of service quality on consumer decision
making appears to be largely indirect and mediated by value and satisfaction A review of the
literature will reveal that the terms quality and satisfaction are quite often used interchangeably.
While both concepts were related and appeared to be merging, there were still gaps in the
understanding of the constructs, their relationship to each other and their antecedents and
consequences. A distinction has often been made between the two constructs. According to
Cronin and Taylor (1992); this distinction is important to both managers and researchers alike,
because service providers need to know whether their objectives should be to have consumers
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who are satisfied with their performance or to deliver the maximum level of perceived service
quality. Oliver (1999) takes the view that satisfaction is 'emotional reaction following a
disconfirmation experience'. Getty and Thompson (1994) defined satisfaction as a summary
psychological state experienced the consumer when confirmed or disconfirmed expectations
exist with respect to a specific service transaction or experience. According to Parasuraman et al
(1985); Satisfaction is a 'post- consumption' experience which compares perceived quality with
expected quality, whereas service quality refers to a global evaluation a firm's service delivery
system Swan and Comb (1976) noted that; 'consumers judge product on a limited set of
attributes, some of which are relatively important in determining satisfaction, while others are
not critical to consumer satisfaction but are related dissatisfaction when performance on them is
unsatisfactory' (1976) for bank, increasing the number of branches may not be a satisfier which
encourages a customer to spend more of their budget with that bank.
However, a reduction in the number of branches may be a dissatisfaction which reduces
behavioral intention. In one study of the UK retail banking sector, it was found that integrity and,
to a lesser extent, reliability, was dissatisfied. Consumers behaved as if these were assumed
standards which all banks will achieve, and were dissatisfied where a bank failed to achieve
them. Research identified many characteristics that were associated with the service quality.
Business researchers Benjamin Schneider arid David Brown (1999) assert that service
organization must meet their key customer need to deliver service excellence. Research identifies
a range of service quality factors that are important for customers including;
• Timeliness and convenience
• Reliability and dependability- it also includes understanding the needs and perspectives of
others and being conscientious of hard- working, well organized and reliable (Cagle, 1998;
Dube, Renaghen and Miller 1994; Greenburg and Sidler, 1998)
• Employee competence and professionalism
customers.(Dube, Renaghen, and Miller, 1994, Goodnan 2000, Greenberg and Sidler, 1998)
• Responsiveness
• Assurance- includes the knowledge and courtesy of employees and their ability to inspire,
trust and confidence (Cagle, 1998; Dube)
• Availability
• Tangibles- includes the physical goods and facilities, equipment and appearance of personnel
(Booth, 1999, Dube, Renaghen, Miller, 19999)
• Appearance of the personnel (Cagle,! 998 )
Many researchers have looked into the importance of customer satisfaction.
Kotler (2000) shows that; these characteristics also apply to customer satisfaction with the public
service quality. Timely service is an especially strong determinant of quality across different
types of banks. Fairness and outcomes are additional factors important to public service
customers, Public sector quality improvement initiatives are on the rise world wide as
contracting and private service provision has become more common.
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2.7 IMPACT OF CUSTOMER SATISFACTION
Kotler (2002) defines customer satisfaction by giving details on the attributes of a highly
satisfied customer. According to him, a highly satisfied customer stays loyal, linger, and buys
more as the company introduces new products and upgrades existing products; talks favourably
about the company its products and upgrade existing products; pays less attention to competing
brands and is less sensitive to price, offers service or product ideas to the company and costs less
to him than new customers because transactions are routine. Several factors affect customers
satisfaction, that is the kind of products that banks offer to its customers can cause customer
satisfaction or dissatisfaction. Consumers do not buy a product or service for their own sake.
Customers bought product to acquire benefits that the product offers. They bought it to satisfy a
need. Products therefore exist for what they fulfill in terms of consumer needs.
Boateng (1994); It is the essential feature of benefit that the buyer expects to receive from
savings account is not buying a passbook, or a card, the customer is buying a safe deposit that
earns an interest and so comparatively, when the interest rate offered by one bank in relation to
other banks is low, it will cause dissatisfaction to that customer. Such a customer may leave the
bank and open an account with the other bank.
2.8 THE COMPLAINT SYSTEM
The complaint system complaints provide an important tool in the overall assessment of
customers’ satisfaction and acts as a useful early warning sign.
Cartwright and Green (1997) summarized this importance by saying that customers who walk
away without complaining are really saying goodbye. They mean “you let me down and you
21
want get another chance”. Those who complain are saying hello! They mean “you let me down
but I want to give you a chance to make it up I want to give you a chance to make it up to me”.
Ian (1994) says that; an organization cannot benefit from complaints if there is no mechanism to
handle them effectively. An effective complaints management system should include the
following, a detailed police for handling complaints, regular training and monitoring, system in
place for dealing with or specific problems or complaints. A good recording and reporting
system, authority for action should be review in handling complaints Johns (1994) also suggested
that, in order to find out what is wrong, how often and how it should be put right, customers
should be encouraged to complain for example, the organization should make it easy for people
to complain through free telephone lines and complaints forms and ask for complaints perhaps
by selecting and approaching customers at random.
2.8.1 Sources of Complaints
Customers tend to complain when they do not maximize utility from the product or service
consumed. A company may have owned of the finest products or services in the market but if
customers cannot get value for their money, they complain and the survival of the company is at
stake. Companies should therefore constantly find ways of improving products or services to
ensure maximum utility for customers one way of doing this is by constantly asking the
customers how the organization is doing and how the organization is doing and how it can get
better (Dei –Tumi, 2005).
Furthermore, customers will always complain if it takes more time than necessary for products or
services to reach them. Companies should design time scales for delivering products or services
and if a particular product or service requires different timing standards, it is necessary to
22
communicate this timing to customers. It is important to note that if a competitor is able to serve
a customer faster, the customers will definitely think of switching to the competitor (Dei-Tumi,
2005).Another source of complaints is customer reception is rather abysmal. Most businesses see
it as a right that as long as they open their business, it is a must that others should come and buy.
People just do not show appreciation for others calling in their offices or shops to transact
business with them. Businesses tend to forget that the foremost reason why they exist is to create
and retain customers. Customers either internal or external are the ones who give organizations
the opportunity to justify their existence (Schewing, 1995; Reicheld, 1996).Haringhton (1995)
states that, the customer affairs department in the US report that, only 4 out of every 100
dissatisfy customers ever complain. The other 96 just walk away and start to look for a new
source of product or service. These 96% of customers are either too nice, or do not want to take
the time and effort or complain. They are called “silent snitchers” of the 4% give the company a
second chance, 95% of them will continue to do business with the company if their complaints
are quickly addressed. Specific techniques for handling complaints made by customers are as
follows, the company must establish a common approach to handling complaints. Before any
company sets about solving the complaints of customers, it must ensure that it has the support of
all the staff including those who do not even have a direct dealing with the customer, this is to
ensure that the cooperate approach to solving the complaints of customers is embedded in the
cooperate culture of the organization so that all the staff will be thinking of the customer in the
same way. Problem resolution is not time for negotiation with the customer who has a genuine
grievance and who should perhaps be compensated generously. The appropriate action should be
taken if the level of seriousness has been ascertained and the relevant facts correctly assessed, if
the complaints of the customers are not resolved at the right time, the customer should be given
23
progressive updates at regular agreed internals (Dei-Tumi, 2005).The organization must also put
in customer satisfaction checks after an appropriate internal, within two weeks, the organization
should get in touch with the customer to confirm that the complaint has been satisfactorily
resolved and to ensure that the organization still has the customers (Dei-Tumi, 2005).Employees
must analyze complaints periodically compliant forms should be filled and returned to central
place where the manager is made to monitor the level and nature of the complaints. The results
this analysis and the details of corrective action should be reported to senior management on a
regular basis for strategic decision to be made (Stoemwell et al; 1998).
2.9 CUSTOMER SERVICE PROGRAMME
Customer service programme process goes beyond just reacting effectively to customer
complaints. A proactive strategy of building an ongoing relationship with the customer
advocated. This process involves the entire service team, identifying and solving customer
related problems. There is the need for an effective plan translated into programmes and projects
to deal with customer services. The planning process should help to meet customer need more
effectively (Moore et al, 1996).Quality customer service programmes can be discussed under
three main elements. These elements will help clarity analysis and act as the basis for activities
designed to improve lifetime customer valve (Dei-Tumi, 2005). The organization must analyze
the characteristics of the service they render to their customers. The analysis of the nature of the
service provided to the customer allows organization to appreciate how the services are seen by
the customers. In any customer service interaction, the perception of the customer is the key to
the company’s ability to ensuring that they are satisfied beyond expectation. There is however
the need to determine the true characteristics of service standards. These are clear, concise,
24
observable and realistic service standards, target towards which all employees can focus their
effort and strive for and expectation depicting what excellence is all about. This will eliminate
any form of doubt about what customers expect and a valuable management tool for recruiting
profile, job descriptions and appointing decisions to control the service image (Boon & Kurtz
1998).The chartered institute of marketers (1997) has outlined some conditions that should be
met if customer satisfaction programmes are at work. These conditions are related to the staff,
the programme and the managements. The staff must be clear about the programme and
sufficiently resource to carry out their roles secondly the programme must provide clear benefits
for staff, be re-enforce by top management; active involving effective implementation, clear
priorities as well as sanctions and rewards. Finally management must be provided with regular
and appropriate information about the progress and effectiveness of staff’s performance.
2.9.1 Management Systems for Monitoring Customer Service
Once a quality customer service image has been created, the organization must maintain it
according to Martin (1991) an effective way to maintain the service image is to develop a system
to monitor performance of customer service team Martin has suggested that service audit,
employee feedback system and customer feedback system can be used to check up on the quality
of the service rendered by the service term in any measurement system. As service audit is a
structured format for determining on a regular basis how service delivery system is functioning.
It establishes a way of measuring the success of service delivery and helps the manager or
service auditor when reviewing the service operation on regular basis. It involves observation,
examination of each service step and function (Martin, 1991). An employee feedback system is
an organized way of noting employee job performance behaviour and discussing that information
25
with the employee. It is a system whereby managers and employees can mutually check on the
quality level of customer service as performed by the employee (Martin, 1991). A customer
feedback system is an organized and deliberate way of finding out what customers think about
the job done. It should be planned and organized with the intention of optimizing customer
information flow into the organization. The voice of the customer must be feedback to all that
come into contact with the external customer on a very personal basis. The most probable
customer contact points are marketing, product engineering (technical solution to customer
problems), sales, delivery, and administration and after sales service (Martin, 1991).
Measurement systems should including a set of core questions that are used year after year and
special should include a set of core questions that are used year after year and special operational
issues that reflect present data requirements. Data is collected using personal contact, mail
surveys, phone survey, benchmarking, data services firms etc. these are used to develop
customer satisfaction measurement (Martin, 1991).
26
CHAPTER THREE
RESEARCH METHODOLOGY
3.0 INTRODUCTION
This chapter looks at the methodology used for the study. It explains the research design. It also
gives details on the population, sample and sampling procedures and the instrument used in
collecting data for the study. It also discusses data collection procedures and analysis.
3.1 RESEARCH DESIGN AND INSTRUMENT
3.1.1 Research Design
Due to the ambiguity of this research and the need to acquire more knowledge and
understanding, this project was basically exploratory research using both qualitative and
quantitative approach.
The research instrument used was self-administered questionnaire, face to face interviews with
respondents and observation. These methods were chosen because of the analysis of customer’s
experience, problems and complaints was made to ascertain if certain traits and attitudes cut
across branches of the bank or whether some are performing better in areas of customer
satisfaction and assurance of customer satisfaction. Also, these designs chosen are flexible. Thus,
asking respondents directly about what is going on is an obvious shortcut in seeking answers to
our research questions. Face to face interviews offer the probability of modifying one’s line of
27
postal and other self-administered questionnaires cannot.
3.2 POPULATION
The total population of branches of The Trust Bank were four (4) branches in Kumasi, the total
customer base of the branches of The Trust Bank in Kumasi were estimated to be twenty
thousand (20000) and the total number of staff in the branches of The Trust Bank in Kumasi was
also hundred and twenty - five (125). The study was centered on the individual customers and
also employees of the selected branches of The Trust Bank in Kumasi.
3.3 SAMPLE AND SAMPLING METHOD
The methods employed were convenient sampling and stratified sampling in the selection of the
branches for the study. These instruments were used for the study because in research studies
where questionnaires and interviews are employed or used, the simple random among other
methods are most preferred. Convenient sampling is the sampling procedure in which cases are
selected haphazardly chosen on the basis that they are easiest to obtain. This sampling technique
was chosen because it enabled the selection of the research sample to be at the comfort of the
research.
The stratified sampling was the most appropriate since there was a need to represent all groups of
the largest population in a certain strata. In this case the method was very economical, offers
accurate results high degrees of representativeness. The research seeks to assess customer
satisfaction in three branches of The Trust Bank in Kumasi metropolis of the Ashanti Region.
Stratification was done on staff based on the bank’s organ gram which included;
28
3.3.1 Branchesof the Trust Bank
Three branches were taken out of four branches. This was because these three branches (Adum,
Suame and Ash Town) were the branches that most customers visited to make their transactions.
Also, these three branches were chosen because of their customer base and the information that
the researchers gained. Bantama branch was not taken because it was a new branch and also had
the least customer base.
3.3.2 Staff and Customers
The total number of staff in the selected branches of The Trust Bank was ninety (90) and the
customers of the three branches were estimated to be sixteen thousand (16000) based on the
projections given by the various branch managers. Convenient sampling was used to get the
number of staff and customers.
Table 3.1: Distribution of the Population and Sample Size
POPULATION POPULATION
SAMPLE SIZE
STAFF CUSTOMERS
Suame Magazine 25 4500 18 97
Ash Town 20 3500 18 90
TOTAL 90 16000 73 375
Source: Field survey (2012)
Due to the bank’s policy, the exact customer bases of the various branches were not given but
ranges. Theranges of customer baseof Adum werebetween six thousand (6000) to ten thousand
(10000), so the researchers took the average number used was eight thousand (8000). The
29
average number was taken because the bank did not disclose information of its customer base.
Adum had the highest customer base followed by Suame and Ash Town respectively.
Based on the table above, it was realized that the estimated total population for the staff and
customers of the three branches were ninety (90) and sixteen thousand (16000) respectively. The
Adum branch had eight thousand (8000) representing 50%, Suame had four thousand five
hundred (4500) representing 26% and Ash town had three thousand five hundred (3500)
representing 24%. These percentages were allocated based on the total population of the three
branches. The researcher used these percentages to calculate the sample size for both staff and
customers of the three branches. Therefore to get the actual sample for the research there was the
need to find first the adjusted sample size which would enable the calculation of the actual
sample size. Using the 50% of the estimated percentage of what Adum branch represented, the
actual sample size was calculated based on 95% certainty that the results of the calculation was
95% accurate with 5% marginal error. From the calculation, the adjusted sample size was first
found to be 384. This was use to calculate the actual sample size which was 375. This was for
the customer sample size. The same procedure was used to calculate for the sample size for the
staff. The sample size for the staff was 73. The actual sample size for both staff and customers
were divided among the three branches based on the percentage they represent. Details of the
calculations are at the appendix.
3.4 SOURCES OF DATA
The sources of data collection include both primary and secondary sources. The primary sources
were questionnaires, interviews and observation with the customers and employees of the 3
branches. Secondary data for the purpose of the study included information gathered and
30
reviewed from textbooks, facts gathered from the internet, research works at libraries and studies
on service quality in local and foreign Journals.
3.5 DATA COLLECTION METHODS
The data collection methods used were self-administered questionnaire, face to face interviews
and observation. Semi structured interview was used to elicit further information from selected
respondent. The Questionnaire was designed to cover all the variables that helped to satisfy the
objective of the study and was made up of items that will lead to the assessment of customer
satisfaction. Observation enabled us to share their experience by not merely observing what is
happening but also feeling it (Gill and Johnson 2002: 144). It is the appropriate technique for
getting at ‘real life’ in the ‘real world’. The type of observation used was participation
observation. With this type of observation, it enabled the researchers to be practically involved in
how the customers react the way they do and why things happened in a particular manner
concerning customer satisfaction. Observations were carried out on two different occasions.
3.6 DATA ANALYSIS
Tables and pie charts were used to give clear visual expression and easy understanding to the
data presented in the study. The results were analyzed using percentages. Each question was
analyzed and the number of respondents who gave particular response was converted to
percentages. The response with the highest percentage was considered as the general opinion of
the customers. All analysis were of precise discussions, which is clear and comprehensible. The
analytical tools for the analysis will include descriptive and antenatal tools. The data was also
analyzed by means of qualitative and quantitative methods which were 90% and 10%
respectively. The software that was used in the analysis of data wasstatistical package for social
31
science (SPSS). This will be used in comparing the response of customers and employees in
figures and percentages. This indicate that an in depth analysis were made from the responses
received and meanings drawn from such responses with the aid of tables and pie chart. This
indicates the use of qualitative approach to the study.
3.7 VALIDITY AND RELIABILITY
Questionnaires were given to our supervisor to be reviewed them before they were administered.
Introductory letters were given to the selected branch managers in order to have access to the
bank and also majority of the customers were willing to respond to the questionnaires.
After collecting all these data, it was edited to detect errors and omissions. This was done to
ensure that the data was accurate and consistent with other facts gathered. SPSS was used to
classify the data into meaningful relationships. Numbers were then assigned to answers so that
responses could be put into a limited number of categories to provide the basis for various
statistical computations. This data was arranged in logical order (tabulation). This would
facilitate analysis and interpretation of the findings.
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4.0 INTRODUCTION
This chapter also analyzed the data collected from the field in order to determine how The Trust
Bank can use customer satisfaction as a competitive strategy to gain competitive edge, to assess
customer’s perception of the service being received from The Trust Bank, to examine the
significance of customer satisfaction and its mechanism and also recommend strategies for
successful management of customer care and complaints. This study is to assess customer
satisfaction at The Trust Bank, limited for the period understudy. For this reason, this chapter
takes into account findings gathered from field, presentation of data, analysis of findings made
and further discussions on the findings.
The figure below indicates the totals and percentage representing the response based on gender
to the questionnaire which was administered.
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Figure 4.1: Gender Distribution of Staff of the 3 Branches of TTB Source: Field survey (2012)
The Figure 4.1: Gender Distribution of Staff of the 3 Branches of TTB above indicates that out
of the 70 respondents, 35 which represented 50% were female and 35 that also represented 50%
were male. The respondents by chance were equal male and female which also made the research
a fair and balanced one. Refer to appendix 4 Table 4.1Gender Distribution of Staff of the 3
Branches of TTB: for details.
Figure 4.2: Number of Persons in the various Administrative Positions at the 3 Branches of TTB
25% %
10 %
32%
32%
33
tellers
others
25% %
10 %
32%
32%
33
25% %
10 %
32%
32%
34
The Figure 4.2: Number of Persons in the various Administrative Positions at the 3 Branches of
TTBabove indicates the various positions of the respondents (staff) who were employees at The
Trust Bank. Three (3) Branch managers from the various branches selected, which represent
10%, 25 customer service officer, which represented 32.5%, 25 tellers represented 32.5% and
other 20 positions represented 25.0 which add up to70 representing 100% constituting the total
respondents(staff or internal customers).This showed that there were many positions at
TTB.Refer to appendix 4 Table 4.2: Number of Persons in the various Administrative Positions
at the 3 Branches of TTB for details.
Figure 4.3: Duration of Tenure for the 3 Branches of TTB
The Figure 4.3: Duration of Tenure for the 3 Branches of TTBabove illustrates the number of
years some employees have been working with the bank. Staff who have worked for less than
one year are sixteen (16) representing 18.3%, employee who have worked with the bank between
6 and 12 years are 32 representing 56.7%, employeeswho have worked with the bank between 2-
56.7%
14.3%
34
less than one year
between 6 and 12
10 years and above
34
35
5years are 14 representing 14.3%.and employees who have worked with the bank for ten years
and above are 8 representing 10.7%This showed that staff turnover was not high but moderate.
Refer to appendix 4 Table 4.3: Duration of Tenure for the 3 Branches of TTB for details.
Figure 4.4: Handling of Customers Complaints of the 3 TTB Branches
The Figure 4.4: Handling of Customers Complaints of the 3 TTB Branches above illustrates how
TTB handle complaints of its customer’s. Throughsuggestion box,telephone,e-mail,customer
service officer, showed that TTB uses 73.3% to handle customers’ complaints, 23.3%
suggestion box,telephone,customer service officer and
3.3% suggestion box.Refer to appendix 4 Table 4.4: Handling of Customers Complaints of the 3
TTB Branches for details.
73.3%
23.3%
3.3
35
suggestion box
35
Figure 4.5: Staff Training at TTB for the 3 Branches
The figure4.5: Staff Training at TTB for the 3 Branches above illustrates staff training by TTB.
The figure showed the staff training of TTB which was either excellent or good thus43.3 %
and50.0% respectively, 1 average which represented 3.3% and 1 no response. This showed that
TTB provided good training for staff. Refer to appendix 4 Table 4.5: Staff Training at TTB for
the 3 Branches for details.
37
Figure 4.6 : Service Support Material for the 3 selected Branches of TTB
The Figure 4.6: Service Support Material for the 3 selected Branches of TTB above indicates
theservice support material TTB had. From figure4.6: Service Support Material for the 3 selected
Branches of TTB,the service support material of TTB was either excellent or good thus 23.3%
and 70.0% respectively.This meant that the employees at TTB had materials to support them in
their service delivery.Refer to appendix 5 Table 4.6: Service Support Material for the 3 selected
Branches of TTB for details.
38
Figure 4.7: Level of Response to Customer’s Complaints at the selected Branches of TTB
The Figure 4.7: Level of Response to Customer’s Complaints at the selected Branches of TTB
above indicates the level of response to customer complaints by TTB. From the figure,the level
of response to customer complaints by TTB was either excellent or good thus 36.7% and 60.0%
respectively.This meant that the employees at TTB highly responded to the needs of customers.
Refer to appendix 5 Table 4.7: Level of Response to Customer’s Complaints at the selected
Branches of TTB for details.
39
Figure 4.8: Technological Support for the selected Branches of TTB
The Figure 4.8: Technological Support for the selected Branches of TTB above indicates
thetechnological supportat TTB. From the figure, the technological support of TTB was either
excellent or good thus 33.3% and 50.0% respectively.This meant that the employees at TTB
highly used technology to support their service delivery. Refer to appendix 5 Table 4.8: Level of
Response to Customer’s Complaints at the selected Branches of TTB for details.
40
Figure 4.9 : Impact on Customer Satisfaction at the 3 Branches of TTB Source: Field survey (2012)
The Figure 4.9: Impact on Customer Satisfaction at the 3 Branches of TTB above indicates the
impact on customer satisfaction by TTB. From the figure, the impact on customer satisfaction by
TTB was either excellent or good thus 36.7% and 60.0% respectively. This meant that the
service delivery of TTB greatly had an impact on customer satisfaction. Refer to appendix 6
Table 4.9: Impact on Customer Satisfaction at the 3 Branches of TTB for details.
41
4.2 CUSTOMER ANALYSIS
Figure 4. 10: Gender of Individual customers of the 3 Branches of TTB
As shown in the figure 4.10: Gender of Individual customers of the 3 Branches of TTB above,
the research showed that with the total of 360 respondents, 216 representing 60% of the
respondents turned out to be males. Females also represented 40% that was 144. From the table,
it was realized that most of the respondents were males. It was so unlikely that the research was
conducted on more males than females.Refer to appendix 6 Table 4.10: Gender of Individual
customers of the 3 Branches of TTB for details.
42
Figure 4.11: Age Ranges of Customers of 3 selected Branches of TTB
Figure 4.11: Age Ranges of Customers of 3 selected Branches of TTB represents the age group
of respondents. (141) representing 39.2% fell between the ages of 18-30years, 81 representing
22.5% fell between the ages of 31-40years, 45 representing 12.5% fell between the ages of 41 -
50 years and 93 representing 25.8% fell within the range of 51 and beyond. This clearly showed
that the company was servicing the youth segment which if managed well and ensuring their
satisfaction would lead to long customer life cycle and was assured of long term profitability and
the company can as well improve their strategies to capture the older groups as well.Refer to
appendix 7 Table 4.11: Age Ranges of Customers of 3 selected Branches of TTB for details
39.2%
22.5%
12.5%
25.8%
42
18 - 30
31 - 40
41 - 50
39.2%
42
43
Figure 4. 12: Accounts of the Individual Customers of the 3 Branches
Figure 4.12: Accounts of the Individual Customers of the 3 Branches above represents the
various responses from respondents which indicated the type of services(accounts) that they had
with The Trust Bank. One hundred and sixty-five represented 45.8% of customers who operated
saving account and current account, 114 represented 31.7%, that was customers with current
account, 30 represented 8.3%, that was other services of the bank and 51 represented 14.2% of
customers who use savings only. It could therefore be realized that most of the respondents were
operating on the savings and current accounts since it attracted a higher rate of interest.Refer to
appendix 7 Table 4.12: Accounts of the Individual Customers of the 3 Branches for details.
44
Figure 4.13: Why Did Individual Customers of the Three Branches Choose TTB
Figure 4.13: Why Did Individual Customers of the Three Branches Choose TTB shows why
customers chose The Trust Bank. One hundred and twenty-nine represented 35.8% were of the
view that it was because of low interest and transaction charges, Six represented 1.7% did not
respond to that item, One hundred and eighty nine represented 52.5% customers who were of the
view that it was because of reliability and responsiveness, thirty six representing 10% were of the
view that it was because of image and prestige the bank had. This depicted that most customers
prefer TTB because they are reliable and responsive which goes in a long run to ensure customer
satisfaction and hence competitive advantage over competitors.Refer to appendix 8 Table 4.13:
Why Did Individual Customers of the three Branches Choose TTB for details
52.5%
1.7%
44
low interest and transaction charges
no response
35.8%
1.7%
44
1.7%
45
Figure 4.14: The Performance of the 3 Branches of TTB
Figure 4.14: The Performance of the 3 Branches of TTB above shows the performance of the
bank, this showed that out of the 360respondents, 69 represented 19.2% said excellent, 165
represented 45.8% showed good, 57 represented 15.8% showedpoor and 69 represented 19.2%
showed satisfactory performance. This showed that majority of customers said it was good with
which there was room for improvement, 57 said it was poor and 69 satisfactory, this clearly
showed that TTB needed to improve in their performance even though it was good. Refer to
appendix 8 Table 4.14: The Performance of the 3 Branches of TTB for details.
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Figure 4.15: Queue Duration Experienced by Individual Customers of the 3 selected Branches of TTB
The figure4.15: Queue Duration Experienced by Individual Customers of the 3 selected
Branches shows the duration respondents stay in a queue before they were served.189
represented 52.5% were of the view that they stay in a queue for less than 10 minutes, 126
represented 35% stay in a queue for 11-20 minutes, 18 represented 5.0% stay in a queue for 21-
30 minutes, 27representing 7.5% stay in a queue for 41and above minutes. Customers mostly
based their satisfaction onthe minutes and hours they spent at the bank. This is because when
customers spend long time in a queue, they are dissatisfied and if they are not attended to, will
switch to other banks. Refer to appendix 9 Table 4.15: Queue Duration Experienced by
Individual Customers of the 3 selected Branches of TTB for details.
35%
46
less than 10 min
52.5%
7.5%
46
less than 10 min
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Figure 4.16: How Individual Customers of the 3 Branches Came into Contact with TTB
Figure 4.16:How Individual Customers of the 3 Branches Came into Contact with TTB
illustrates how customer got to know the bank. Thirty (30) represented 25.0% came into contact
through advertising, 144 represented 40% was through word of mouth, 66 represented 18.3%
which was through personal interest and 60 represented 16.7% through other sales personnel.
Word of mouth rate of the company is high due to the strong relationship built and advert. This
means that word of mouth rate and advert in bank is high. This also shows that The Trust bank
reaches the majority of its target population through word of mouth and advert.Refer to appendix
9, Table 4.15: How Individual Customers of the 3 Branches Came into Contact with TTB for
details.
40%
25%
16.7%
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which was through personal interest and 60 represented 16.7% through other sales personnel.
Word of mouth rate of the company is high due to the strong relationship built and advert. This
means that word of mouth rate and advert in bank is high. This also shows that The Trust bank
reaches the majority of its target population through word of mouth and advert.Refer to appendix
9, Table 4.15: How Individual Customers of the 3 Branches Came into Contact with TTB for
details.
advert
25%
18.3%
47
w

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